Which of the following is not true with respect to the concept of reasonable assurance?
A)Reasonable assurance allows for mistakes and misinterpretations by the audit team throughout the examination.
B)The nature of many audit procedures is such that they cannot always be relied upon to detect misstatements.
C)Audit teams should evaluate all transactions and components of an account balance or class of transactions.
D)Auditors should control the overall risk in an audit to an acceptably low level.

Question

Quizplus · Accepted Answer

Reasonable assurance acknowledges the limitations of an audit, including the possibility of not detecting all misstatements, but it does not require auditors to evaluate all transactions and components of an account balance or class of transactions. Instead, auditors apply sampling and other techniques to manage audit risk and reach a conclusion.

Which of the Following Is Not True with Respect to the Concept